Germany: Fund industry manages EUR 1,600 billion for retirement provision
The fund industry is the largest manager of capital for retirement provision in Germany. ‘Although people often have different access via life insurance policies, pension schemes or employers, finally a large proportion of social capital is invested in funds,’ says Thomas Richter, CEO of the German Investment Funds Association BVI. According to a BVI survey, members managed EUR 1,600 billion for retirement provision purposes by mid-2020. This is almost half of the total assets of the fund industry in Germany. For comparison: three years ago, the share was 40 percent. During this period, assets for retirement provision purposes grew by EUR 430 billion. Of the assets managed, EUR 1,110 billion are accounted for by open-ended Spezialfonds, EUR 240 billion by open-ended retail funds, EUR 230 billion by mandates and EUR 10 billion by closed-ended funds. In particular, endowment life insurance with EUR 600 billion and company pension schemes with EUR 450 billion are the main driver of the assets for retirement provision purposes. A further EUR 340 billion come from professional pension funds. The remaining EUR 200 billion are divided between supplementary pensions for the public sector and subsidised and unsubsidised fund savings plans.